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2024 (1) TMI 642 - AT - Service TaxExemption from Service Tax - Commercial Training and Coaching Centre Services and Airport Service - providing training for flying aircraft to the pilot trainees - providing Landing and Parking Services to the other aircrafts which land in the premises of the institute - HELD THAT - The Hon ble High Court of Delhi in the case of M/S INDIAN INSTITUTE OF AIRCRAFT ENGINEERING VERSUS UNION OF INDIA ORS 2013 (5) TMI 592 - DELHI HIGH COURT has held that An educational qualification recognized by law will not cease to be recognized by law merely because for practicing in the field to which the qualification relates, a further examination held by a body regulating that field of practice is to be taken. Thus, the issue is fairly settled in favour of the appellants. Therefore, we hold that the training imparted by the HICA is not exigible to service tax. Accordingly, the demands raised on Commercial Training and Coaching Centre Services rendered by the appellants are not sustainable. The demand on Airport Services is within the exemption limit. The appeal is partly allowed by dropping the demand as far as Commercial Training and Coaching Centre Services is concerned.
Issues Involved:
The issues involved in the judgment are related to the demand of service tax on "Commercial Training and Coaching Centre Services" and "Airport Service" provided by M/s Haryana Institute of Civil Aviation (HICA). The Department appealed against the non-imposition of penalty under Sections 76, 77 & 78 by the Adjudicating Authority. Comprehensive details of the judgment for each issue involved: 1. Demand on "Commercial Training and Coaching Centre Services": The Adjudicating Authority confirmed the demand of service tax on "Commercial Training and Coaching Centre Services" provided by HICA. However, the appellant argued that the demand was not sustainable, citing precedents like the case of Indian Institute of Aircraft Engineering. The Tribunal referred to the Delhi High Court decision which held that the qualification recognized by law for such training activities exempts them from service tax liability. The Tribunal further noted that the courses conducted by HICA were essential for employment in specialized fields, leading to the exemption of service tax liability on "Commercial Training and Coaching Centre Services." Consequently, the demand on this service was deemed not sustainable. 2. Demand on "Airport Service": The appellant contended that the demand on "Airport Service" provided by HICA was covered under the small-scale exemption during the relevant period. The Tribunal agreed with this argument, stating that the demand on "Airport Service" fell within the exemption limit. Therefore, the demand on "Airport Services" was considered sustainable within the exemption limit. 3. Imposition of Penalty: The Department appealed against the non-imposition of penalty under Sections 76, 77 & 78 by the Adjudicating Authority. However, the Tribunal dismissed the Department's appeal, upholding the decision of the Adjudicating Authority to refrain from imposing any penalty. In conclusion, the Tribunal partly allowed the appeal filed by HICA by dropping the demand on "Commercial Training and Coaching Centre Services" and dismissed the appeal filed by the Department regarding the imposition of penalty. The judgment clarified the legal position regarding the exemption of service tax on certain training activities recognized by law and the applicability of small-scale exemptions to specific services provided by HICA.
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